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REPORT ON PLANS ANDPRIORITIES 2006-2007

Jean-Pierre Blackburn

Minister of the Economic Development Agency of Canada for the Regions of Quebec

Economic Development Agency of Canada for the Regions of Quebec

Report on Plans and Priorities 2006-2007

TABLE OF CONTENTS

1 OVERVIEW 1

1.1 Message from the Minister

1.2 Management representation statement 3

1.3 Summary 4

1.4 Plans and priorities 6

1.4.1 Program priorities 7

Priority #1: Help regions and communities in transition 7

Priority #2: Reinforce the performance of innovative SMEs in key sectors 9

1.4.2 Management priorities 10

Priority #3: Reinforce the Agency’s capacity to develop policy and design programs 11

Priority #4: Equip the Agency with processes and systems required to ensure increased results-based management capability 11

1.5 Links with Government of Canada results and performance 12

1.6 Context 13

1.6.1 Strategic directions 2006-2011 13

1.6.2 External factors 14

Metropolitan Montréal 16

Major urban centres: Québec and Gatineau CMAs 17

Central areas 18

Outlying areas 19

Vulnerable communities 20

1.6.3 Internal factors 21

2 ANALYSIS OF PROGRAM ACTIVITIES BY STRATEGIC OUTCOME 23

2.1 First strategic outcome: Vitality of communities 23

2.1.1 Program activity: Improvement of the economic environment of regions 23

2.1.2 Program activity: Improvement of community infrastructure 26

2.1.3 Program activity: Provision of special adjustment measures 28

2.2 Second strategic outcome: Enterprises’ competitiveness 29

2.2.1 Program activity: Enterprise development 29

2.3 Performance measurement strategy 32


3 ADDITIONAL INFORMATION 33

3.1 Information on the organization 33

3.2 Financial tables 34

3.2.1 Departmental planned spending and full-time equivalents 34

3.2.2 Program by activity 35

3.2.3 Voted and statutory items listed in Main Estimates 35

3.2.4 Services received without charge 36

3.2.5 Sources of non-respendable revenue by program activity 36

3.2.6 Details on transfer payments programs 37

3.3 Sustainable Development Strategy 38

3.4 Internal audit and evaluation 40

4 APPENDICES 43

4.1 Agency tools and programs 43

4.2 List of acronyms 49

4.3 Agency business offices 50

4.4 Index 51

Report on Plans and Priorities 2006-2007 1

1OVERVIEW

Canada and Quebec are evolving in an economic system in ferment. Globalization has led to free markets and generated new business opportunities. It has also heightened competition, redeployed economic forces and produced new dynamics, and consequentlyplaced new economic concerns on the agenda. Global market forces present sizeable challenges for our economy, regions and communities. They also have an impact on how government intervention will be carried out.

The Agency makes it its duty to meet effectively the expectations of Canadians, communities, enterprises and all its partners. For that reason, it carefully monitors economic trends and proposes strategic approaches and directions with regard to thesenew issues. The challenges of regional economic development fit into a broad contextcombining economic, social, cultural and environmental concerns. Two strategic outcomes with respect to regional development are targeted: vitality of communities, and entreprises’ competitiveness. In the field, our activities to achieve our objectives willcover the whole of Quebec, that is, outlying and central areas, major urban centres,Metropolitan Montréal, and the most vulnerable communities within those four areas.The Agency cannot take the place of the regions’ entrepreneurial dynamism. But, in closecooperation with local economic agents, it offers them its assistance in finding solutionsto their areas’ development issues.

1.1 Message from the Minister

2 Economic Development Agency of Canada for the Regions of Quebec

We recognize today that innovation and increased productivity help to improve our enterprises’ competitive position and our economy’s competitiveness. Enterprises — and this is especially true for remote regions—have to develop value-added products and services to remain competitive. To achieve these goals, the Agency places advisors and a whole range of tools at their disposal. Our programs have to adapt to the needs ofSMEs and communities. Particular attention is paid to the regions of Quebec strugglingwith difficulties, whose economies depend either on the harvesting of natural resources or on a single sector of activity that is slow adjusting to the new realities of world trade.

Recently, I enthusiastically embarked on this new mandate as Minister of the EconomicDevelopment Agency of Canada for the Regions of Quebec. My interest in regional development is well known. It is also one of the priorities of our government, which wishes to encourage the economic development of every region of Canada and to offeropportunities for employment to all Canadians.

I therefore invite you to read this, the 2006-2007 Report on Plans and Priorities of the Economic Development Agency of Canada for the Regions of Quebec, in which you will find all the Agency’s commitments for making Quebec’s regions both dynamicand prosperous.

Jean-Pierre Blackburn

Minister of the Economic DevelopmentAgency of Canada for the Regions of Quebec


1.2 Management representation statement

I submit, for tabling in Parliament, the 2006-2007 Report on Plans and Priorities (RPP)of the Economic Development Agency of Canada for the Regions of Quebec.

This document has been prepared based on the reporting principles contained in theGuide for the preparation of Part III of the 2006-2007 Estimates.

� It adheres to the specific reporting requirements contained in the TBS guidance.

� It is based on the department’s approved Program Activity Architecture structure as reflected in its MRRS.

� It presents consistent, comprehensive, balanced and accurate information.

� It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it.

� It reports finances based on approved numbers for planned spending from the Treasury Board of Canada Secretariat.

_____________________________________

Michelle d’AurayPresident

Date: ________________________________


1.3 SummaryRational

Under its Act, which came into effect on October 5, 2005, the object of the Agency is topromote the long-term economic development of the regions of Quebec by giving specialattention to those where slow economic growth is prevalent or where opportunities for productive employment are inadequate. In carrying out its object, the Agency shall take suchmeasures as will promote cooperation and complementarity with Quebec and communitiesin Quebec.

Benefits for Canadians

Well-being and standard of living improved for Canadians through investment in regionaldevelopment meeting the needs of the regions, communities and enterprises and helpingthem adjust to the challenges of the global economy.

To contribute to Canada’s performance

By fostering strong economic growth.

Two long-term strategics outcomes

Dynamic, revitalized Quebec communities enjoying a better socio-economic outlook:Canadians’ quality of life is improved by revitalizing Quebec communities through intervention supporting mobilization with local milieus, emergence of new entrepreneurs,creation of small enterprises, attraction of tourists and retention of skilled workers.

Competitive Quebec SMEs and regions owing to the presence of conditions conducive tosustainable growth: Canadians’ standard of living is improved through lasting strategicinvestment in the capability of regions, networks, knowledge institutions and SMEs to compete on the Canada-wide and global stage.

Through an integrated regional development approach

Global: take economic, social, cultural and environmental dimensions into account in thedesign of policy, programs and initiatives.

Territorial: establish strategies geared to the type of area defined in terms of similar socio-economic issues.

Horizontal: build on cooperation and collaboration with federal partners, the Governmentof Quebec and Quebec communities.

Participatory: elicit participation by the economic agents concerned.


2006-2007 2007-2008 2008-2009

Total planned spending 381,329 277,599 258,295($ thousands)

Human resources 408 408 408(Full-time equivalents)

Agency resources

By eliciting and surpporting development through

� guidance and referral services� financial assistance� analyses of issues, prospective studies, opinions and information

so as to

� empower and develop the capabilities, competencies, knowhow and business networks of entrepreneurs and local and regional economic agents

� facilitate the participation of regional economic agents in the design and implementation of a vision, a plan and growth-generating projects for the development of a region.

With several beneficiaries

� enterprises (especially SMEs)� non-profit organizations (NPOs) � communities

backed by its 14 business offices and a network of some 300 development organizations deployedacross Quebec including

� local development organizations supporting communities� regional or sectoral organizations offering general and specialized services to

business, in particular in exports and innovation � knowledge institutions (research centres, college technology transfer centres

and universities).

By generating meaningful resultsas of March 31, 2009, the Agency will have contributed to:

� reinforcing mobilization of the local milieu� developing the local entrepreneurial fabric� attracting and retaining skilled workers and tourists� enhancing SMEs’ performance� stimulating commercialization of innovation� upgrading community infrastructure.

Planned spending1

($ thousands)

Program priority for the first strategic outcome: Vitality of communitiesProgram activity: Improvement of the economic environment of regions

Priority #1:Help regions and communities in transition 63,450 64,050 66,150

Program priority for the second strategic outcome – Enterprises’ competitivenessProgram activity: Enterprise development

Priority #2:Reinforce the performance of innovative SMEs in key sectors 33,000 35,300 48,100

Departmental management priorities in line with the Management Accountability Framework

Priority #3: Reinforce the Agency’s capacity to develop policy and design programs

Priority #4: Equip the Agency with processes and systems required to ensure increased results-based management capability.

Note:1 Planned grants and contributions expenditures.


1.4 Plans and priorities The purpose of this section is to present the four priorities and associated plans for 2006-2009 (the Agency’s overall intervention is explained in Section 2, which presents totalplanned spending by program activity). The Agency intends to devote about half of its grantsand contributions budget to its priorities. Of the four priorities selected, three are new. Fiscal Year (FY) 2006-2007 also marks the beginning of implementation of the Agency’s strategicdirections for 2006-2011. Thus, in many respects, 2006-2007 will be a key year for theAgency. In clearly identifying its priorities and having specific plans for them, the Agencyintends to progress systematically toward attainment of the defined strategic outcomes.

Agency priorities by strategic outcome

Type:New

Type:Already established

2006-2007 2007-2008 2008-2009


The four priorities chosen are of two types: two program priorities, and two management priorities. The Agency’s program priorities aim to intensify its intervention in regions and communities in transition and reinforce the performance of innovative SMEs in key sectors.Management priorities aim to reinforce the departmental capacity to develop policy and design programs and equip the Agency with processes and systems required to ensureincreased results-based management capability.

1.4.1 Program priorities The following table presents the two program priorities in terms of the Agency’s strategic outcomes.

Priority #1: Help regions and communities in transition

As its first priority, the Agency wishes to help certain regions and communities in their socio-economic transition. The planned budget is approximately $195 million over threeyears. This priority comes under the Improvement of the economic environment of regions program activity. The Agencyintends to support and foster the completion of projects likely to respond to these communities’ specific issues so as to mitigatesocio-economic adjustment difficulties, renew the entrepreneurialbase and facilitate economic diversification by building on their specific assets and potential on the industrial, tourism, cultural orknowledge fronts. Thus, these communities will be in a positionto open up to new economic sectors with high added value andattractive growth potential in order to envisage the creation ofsustainable employment.

Vitality: manifestation of

remarkable health or activity.

A society’s ability to manage

the tensions and constraints

of modern life caused by social

dislocations and divides.

Quality of life: balance between

an individual’s needs and the

means he has to meet them.

Concept incorporating all the

elements to make an individual’s

physical, intellectual, moral and

spiritual environment satisfying.

Strategic outcome #1:Vitality of communities

Priority #1: Help regions and communities in transition

Priority #2: Reinforce the performance of innovativeSMEs in key sectors

Strategic outcome #2:Enterprises’ competitiveness

Program priorities


In order to achieve this priority, the Agency intends to pursue implementation of four initiatives:

� Fishing Community Economic Diversification Initiative

� Community Economic Diversification Initiative - Coulombe Report

� Capacity-building

� Patient Capital Fund.

These initiatives essentially target the communities’ economic diversification as well as development and reinforcement of the social economy in Quebec. The main results targeted are:

� increased awareness and empowerment of players with respect to issues

� enhanced entrepreneurship

� reduced dependence on natural resources

� greater access to knowledge for enterprises and communities

� reinforcement of social cohesion and communities’ capability

� improved commercialization

� social economy enterprises’ growth with respect to startup and expansion, translating into creation and maintenance of employment

� increased access to capitalization for social economy enterprises.

If need be, other initiatives will be designed and implemented during the year in order to meetproactively the specific issues of communities in transition.

Jacques Larivée and Nathalie Brunelle © Le Québec en images, CCDMD


Priority #2: Reinforce the performance of innovative SMEs in key sectors

This priority, which is in line with the Enterprise development program activity, ties in withthe Agency’s desire to develop SMEs in key sectors from the different parts of Quebec.Equipped with a $116-million envelope over three years, this second priority involves implementing two special initiatives.

A primary Agency target is the enhanced international competitiveness of SMEs in keysectors in Greater Montréal. The key sectors focussed on by the Agency are aerospace, life sciences, nanotechnology, bio-food and environmental technology. To that end, theAgency intends to invest in strategic capabilities, networking and attracting strategichuman and financial resources.

Second, the Agency is aiming for the broadening and diversification of SMEs’ subcontracting networks so as toenhance their competitiveness and their ability to integratewith globalized production chains and to meet the require-ments of major manufacturers in Canada and abroad.

The main results targeted by the two initiatives are:

� reinforcement of enterprises’ strategic capacity to develop and commercialize their innovations

� reinforcement of links and discourse among enterprises, universities, research centres and other sectoral players in Montréal clusters

� increased investment and employment

� increased outreach and relative importance on the international front

� increased private investment in the Montréal area in high value-added industrial sectors

� increased number and value of SMEs’ subcontracting contracts with prime contractors

� SMEs’ decreased dependence on specific prime contractors.

Competitiveness: capability of

a price, product, enterprise or

national economy to meet

competition, and ability to

sustain it. Capability of an

enterprise or national

economy to maintain or

increase its market share,

on the domestic market

(domestic competitiveness)

and outside markets

(external competitiveness).

Standard of living: conditions

of individuals’ or populations’

existence as measured by the

goods and services to which

they have access on the basis

of their income.


Under this priority, the Agency does not intend to limit its action to these two initiatives, since others could be developed and implemented to support innovative SMEs in key sectorsfrom other areas of Quebec. For instance, among the key sectors focussed on in the majorurban centres are optics-photonics, health and nutrition, medical equipment and computertechnology. Among those in the central areas are biotechnology, metallurgy and agri-food.Finally, among those in outlying areas are aluminum, marine science and technology,and forestry.

1.4.2 Management priorities

To reinforce the obligation to perform management reporting, the Government of Canada hasset up the Management Accountability Framework (MAF), which provides a comprehensive,integrated model for management and management improvement. The MAF aims to reinforcemanagers’ accountability with regard to ten main elements that summarize the Government of Canada’s expectations. The Agency is gradually implementing all the elements of the MAF, but intends to give priority to intensifying its efforts with respect to two of them.

The Management Accountability Framework is available at:http://www.tbs-sct.gc.ca/maf-crg/index_e.asp

MAF: Policy and Programs


Priority #4: Equip the Agency with the processes and systems required to ensure increasedresults-based management capability

MAF: Governance and Strategic Directions

Management priorities in line with the Management Accountability Framework



This priority involves reinforcing the departmental capacity to develop policy and design programs at a time when the Agency’s main programs (Regional Strategic Initiatives [RSIs] and Innovation, development of entrepreneurship and exports [IDEA-SME]) are expiring inMarch 2007. It is linked to the MAF Policy and Programs element. The Agency intends toconsolidate its political and analytical capabilities so as to be able to generate the knowledgerequired concerning implementation of the strategic directions for 2006-2011 and lead todevelopment of high-quality options with respect to policy, program design and advice forministers. Reinforcing these capabilities also involves investing in human resources. To thatend, the Agency will build, among other things, on training and on more innovative means,such as participation in in-house and external communities of practice, thus facilitating accessto information and the sharing of good practices. This capability will enable it to anticipatethe issues more accurately and plan an appropriate strategic response with respect both to policy and to programs.

Priority #4: Equip the Agency with processes and systems required to ensureincreased results-based management capability

This priority is linked to the Governance and strategic directions element of the MAF. The Agency wants to bring together essential conditions (internal consistency, organizationaldiscipline and harmonization on the basis of results) to ensure effective governance of and follow-up on anticipated results so as to support the Minister. Tangibly, the Agency will continue to implement its new results-based integrated planning mechanism, which incorporates the strategic and operational dimensions and points all resources (human, financial, relational, informational and technological) in the same direction, toward the attainment of results. In addition, the Agency will update its Management, Resources andResults Structure (MRRS) by incorporating its new, recently approved Program ActivityArchitecture (PAA), which will come into effect in April 2007. Its MRRS will enable it to link resources to results and identify responsibilities explicitly. Moreover, results-based management presupposes the availability of balanced information which requires access to the systems and processes generating that information. To that end, the Agency will putinformation management in place and update its systems and processes

Marcel Labonté © Le Québec en images, CCDMD Claude Demers, photographer – Université du Québec à Trois-Rivières


1.5 Links with Government of Canada results and performance

Regional development represents for the Government of Canada a lever for reinforcing equalopportunity, a fundamental Canadian value enshrined in the Constitution. More specifically,this lever helps the regions achieve their full potential with respect to productivity, innovation,economic growth and quality of life.

The Government of Canada has drawn up a government-wide framework to monitor the contribution of all federal departments and agencies to Canada’s performance. This frameworkcomprises the following three key policy areas:

� economic affairs

� social affairs

� international affairs.

Through its program activities and its priorities, the Agency contributes to economic affairs, as the following table illustrates.

Canada’s Performance is available at :http://www.tbs-sct.gc.ca/report/govrev/05/cp-rc_e.asp

Links with Canada’s Performance


1.6 ContextThe Agency’s priorities, as well as its overall intervention in regional development, are intended to be a response to the context of socio-economic development of Quebec and itsregions, and to internal management challenges. This section presents this development context and identifies the issues, risks and opportunities in whose context the Agency operates.

1.6.1 Strategic directions 2006-2011This Report on Plans and Priorities marks the beginning of implementation of the Agency’sstrategic directions for 2006-2011. These directions constitute the Government of Canada’slong-term strategy for meeting the challenges of regional development in Quebec. These challenges stem primarily from complex international phenomena: globalization of trade,increased competition from emerging economies, more rapid changes on the technology andknowledge front, territorial recomposition through increased urbanization, and so on. Theimpact of these phenomena in Canada and Quebec is multi-faceted and worrisome: greaterpressure to increase productivity, develop and commercialize innovations and bring knowledgeto the world; devitalization of certain areas associated with relocation or closing of enterprises,etc. Through focussing its intervention and investment on the vitality of communities, SMEs’competitiveness and regions’ competitive positioning, the Agency intends to energize Quebec’sregions and thus contribute to their prosperity and a lasting improvement in their residents’quality of life and standard of living.

The new strategic directions are built primarily on implementation of an integrated development approach based on four interrelated dimensions:

� global: takes the economic, social, environmental and cultural dimensions into account in the planning and drafting of departmental and regional strategies

� horizontal: incorporates federal partners’ expertise, capabilities and means, thus fostering cooperation and collaboration in order to meet the regions’ needs more closely

Vision for development

In the long term, Quebec’s regions and communities will have increased their developmentcapabilities, dynamism and prosperity in a significant, lasting manner for the benefit of theirresidents.


� territorial: is based on differentiated, consistent strategies reflecting four types of areas while paying special attention to vulnerable communities located in those areas� Metropolitan Montréal� the major urban centres of Québec and Gatineau� central areas� outlying areas

� participatory: elicits participation, takes expectations into account and draws on the competencies and experience of the economic agents concerned in order to inform the development and implementation of policy, strategies, initiatives, programs and services.

The Agency will take advantage of the expiration in 2007 of its two main programs,IDEA-SME and RSI, to update its program framework from this year so as to ensureeffective implementation of the strategic directions.

1.6.2 External factorsOverall, the Quebec economy is maintaining its growth rate despite a context of intensified globalcompetition, particularly from emerging markets, such as China and India. Owing to Quebec’sindustrial structure, the province nonetheless has in some respects fallen behind the Canadianaverage: lower employment levels, backwardness in terms of productivity and technological intensity for enterprises, SMEs more numerous in traditional sectors, regions struggling withadjustment difficulties, caused particularly by socio-economic shocks (enterprises closing and relocating, moratorium on groundfish, lumber crisis, and so on). By investing in the vitality ofcommunities, the Agency seeks to reinforce communities’ capacity to take their own developmentin hand, meet their challenges and energize themselves.

Market globalization, while affording new business opportunities, entails adjustment issues for Quebec’s SMEs and regions. Doing business on a global scale is complex and risky. On the one hand, to maintain and increase Quebec’s competitiveness, enterprises must meet the challenge of constantly developing their strategic capability in management, innovation and market development, and their capacity to develop and get the most from their networks. On the other hand, the regions’ competitive position involves development and consolidation of links among knowledge institutions, enterprises and capital providers, as well as their ability to attract investment.

Gérard Duval and Martin Guérin © Le Québec en images, CCDMD


Quebec areas and socio-economic issues

Territorial Division

Outlying areas

Central areas

Major urban centres

Metropolitan Montréal

Sept-Îles

SaguenayRimouski

Val D’or

Québec

Gatineau

St-Jérôme

Montréal

Trois-Rivières

Drummondville

Granby

SherbrookeSaint-Jean

The following section presents the risks and challenges of and opportunities for development,which indeed vary considerably from one part of Quebec to another. The map below shows howQuebec breaks down geographically in terms of similar socio-economic issues.


Metropolitan Montréal

The Montréal census metropolitan area (CMA) accounts for approximately half of Quebec’spopulation and enterprises. It rivals major cities worldwide. Maintaining and developing itsvitality and competitiveness in a lasting way are continual issues for Metropolitan Montréal.Successfully attracting and retaining the best talent (qualified workers, as well as immigrantsand enterprises) represents a constant challenge of concern to the partners in its development.The Montréal CMA, like many other metropolitan areas, is also faced with specific risks andissues associated with the environment (highway congestion and smog), safety and renewal ofits public infrastructure. The CMA’s vitality involves injecting economic and social dynamisminto disadvantaged neighbourhoods so as to reduce spatial polarization, and also reinforcingattraction and outreach capabilities internationally.


Through its universities, numerous research centres and 2,000 or so research and development(R&D) institutions, Greater Montréal has become a hot-spot R&D centre in Canada. Its huge port, extensive highway network, far-reaching rail links and easy access to other marketsenable Montréal to benefit from globalization. Its competitive edge lies in its ability to adjustquickly to innovations, find and bring together skilled human resources and put in place networks combining knowhow and technology. The Agency intends to support the intensification of productive links among innovation players with a view to enhancing commercialization of innovation, and also intends to showcase the quality of research so as to attract direct foreign investment.

The CMA is one of the most diversified manufacturing centres in North America, with the presence of industrial and sectoral clusters in highly competitive markets. How Montréal’s competitiveness evolves is linked with the development of clustersof innovative enterprises in such sectors as aerospace, communi-cations and information technology, biotechnology, bio-food andbio-pharmaceuticals. As mentioned in the previous section, theAgency intends to invest on a priority basis in the reinforcementof specific Montréal industrial clusters so as to promote theirinternational positioning.

Major urban centres: Québec and Gatineau CMAs

The Québec and Gatineau CMAs play an important role in Quebec’s dynamism and prosperity, and afford their residents a remarkable quality of life. The development of theseCMAs is built on the presence of provincial and federal seats of government, universities,research centres, emerging enterprises in technological sectors, a highly educated populationand international-calibre tourism infrastructure.

Cluster: group of enterprises

and institutions sharing the

same area of competency,

geographically close, linked

among themselves and

complementary.This grouping

enables enterprises to benefit

from competitive advantages.


Their manufacturing sector, however, comprises mostly medium- and low-technology enterprises having difficulty contending with their competitors on an international scale.Diversification of their economic structure and consolidation of their entrepreneurialdynamism in technological sectors are the issues recognized by these CMAs’ development players. The Agency intends to pursue integration of the tourism offering in these CMAs inorder to enhance international marketing of attractions. The Agency also intends to focus itsefforts on development of highly innovative sectors and build on networking and valorizationof research, notably with knowledge institutions, in order to increase enterprises’ strategiccapabilities and enable them to take greater advantage of business opportunities.

Central areas

The central areas consist of urban and rural communities located between an hour and anhour and a half by road from the Montréal or Québec metropolitan areas. They include urban centres of more than 100,000 inhabitants, such as Sherbrooke and Trois-Rivières, and important smaller urban centres, such as St-Jean-sur-Richelieu, Drummondville, Granby,Saint-Hyacinthe and Sorel-Tracy. The manufacturing sector of these areas is diversified,accounting for a major share of the economic structure, but posts a heavy concentration of low- or medium-technology industries.


Improving manufacturing SMEs’ productivity is a key issue for maintaining the central areas’economic strength. Adoption of new technology is a determining challenge for enterprises tobe able to face international competition. Manufacturing SMEs located near major urban centres are likely to enjoy an advantage insofar as they can benefit from specialized businessservices, which are often concentrated in major centres.

To develop, the central areas can build on emerging centres, some of which present the potential to become competitive Canada-wide. Consolidation and reinforcement of industrialproduction involves in particular the intensification of contact between knowledge producersand enterprises. Sherbrooke and Trois-Rivières are also building on the presence of universitiesand on research and technology transfer centres to support their economic development. The Agency intends to energize communities in these areas by reinforcing development capabilities and entrepreneurship and enhancing their specific assets. It also wishes to reinforce these areas’ competitiveness by facilitating the adjustment and consolidation of their economic base, notably by enhancing SMEs’ performance and placing greater emphasison the importance of knowledge.

Outlying areas

Outlying areas cover a vast surface area, present low population density and are far from major urban centres and markets. They are less diversified and thus more at-risk from the vagaries of the economic situation. The natural resources sector also plays a predominant role. But new resource management policy is generatingever more stringent requirements with respect to environmental protection, and this represents an additional adjustment challenge for communities in these areas. The natural resources sector uses capital-intensive technology and creates a limited number of jobs.The challenge is accentuated by the actual or anticipated exhaustionof natural resources in many communities. In such a context,

development agents agree that the appropriate strategy is to develop new key sectors so as to diversify these areas’ economic base and thus mitigate the situation. To reinforce these areas’ competitiveness, the Agency intends to facilitate the consolidation, reconversion and diversification of the economic base as well as the transition toward higher value-added transformation and production activities.

Some regions involve their universities in the regions’ own development: Saguenay (Chicoutimi,UQAC), Abitibi-Témiscamingue (Rouyn-Noranda, UQAT) and Bas-Saint-Laurent (Rimouski,UQAR). The university towns in outlying areas are closely linked with economic activities basedon use of their region’s natural resources, and play a central role in those areas’ innovation systems. These towns also constitute economic, financial and commercial centres for neighbouringcommunities and regions.

Local development:

communities take charge

of their own development

by valuing entrepreneurship

and fostering the emergence,

development or maintenance

of viable enterprises of local

or regional scope and social

economy enterprises.


Many communities in the outlying areas are experiencing a population decrease. Attracting and retaining skilled labour is a demanding challenge. A strong feeling of belonging can be conducive to mobilizing certain communities. This mobilization is an essential condition for the development which the Agency intends to enhance. To help these communities meet thesechallenges and grasp these opportunities, the Agency wishes also to reinforce local leadership and development capabilities.

Vulnerable communities

Within the four areas mentioned above, some communities are also faced with special challenges and risks. Communities deemed vulnerable are characterized by the presence or anticipation of economic crises. These communities are subdivided into three categories, on the basis of specific characteristics: single-industry, isolated rural, and devitalized urban.

Raymond Lévesque © Le Québec en images, CCDMD


In Quebec there are several dozen single-sector or single-industry communities that are therefore potentially vulnerable to significant economic reversals should the principal employerclose down or the dominant economic activity contract. Many of these communities dependon natural resources — forestry, mining or fishing — and are vulnerable to the rapid erosionof or reduction in those resources. The closing of the main company or decline of the dominant economic sector in small, remote communities is likely to have a major impact on local firms, individuals and the community. Minimizing the risks associated with thisdependence is the challenge facing these communities.

Isolated rural communities are generally small in terms of population, market and labour pool,are quite isolated from major urban centres and exhibit little diversification. They also affordlimited job opportunities and are not a major draw for investors and immigrants. Sources ofcapital to support local entrepreneurship are limited, and production and investment decisionsare often made by non-residents. Specialized business services and infrastructure are lacking,and this adds to the difficulty of producing locally. The challenge for these communities is tobuild and maintain productive relations with nearby regions.

Devitalized urban communities are characterized by higher-than-average unemployment,despite the availability of jobs. This situation stems from the local population’s low level of schooling and limited occupational mobility, whereas these communities often rely on the presence of enterprises operating in sectors with healthy development prospects. The economic fabric suffers the after-effects of the decline in traditional manufacturing industriesthat has affected a large number of workers established in those communities. The main issue associated with the development of devitalized urban communities is ensuring that their populations can benefit from economic growth and diversification.

In sum, for all these vulnerable communities, the Agency intends to boost their vitality by supporting development of socio-economic adaptation and adjustment capabilities so as toovercome their specific situational and structural challenges. It also wishes to intensify theirdiversification by facilitating the identification and enhancement of viable, sustainable newdevelopment opportunities.

1.6.3 Internal factorsOn a quite different front, implementing the 2006-2011 strategic directions while pursuingapplication of the federal government’s modern management program and the ManagementAccountability Framework represents a demanding in-house challenge that requires a changein corporate culture with respect to planning, procedures and management within the Agency.Taking into consideration the social, cultural and environmental dimensions in order thus tomove beyond the economic outlook is also a sizeable challenge. Becoming more proactive soas to anticipate development issues and act on them highlights the need to develop new strategic capabilities on the human, relational, procedural and systemic fronts.


With respect to human resources, implementing the Public Service Modernization Act entails a major change in how things are planned, and thus represents a challenge in itself within the Agency. To meet this challenge, the Agency intends to determine key risks, issues andmeasures on a regular basis in order to ensure that it has the capability to achieve its plans and priorities. Moreover, in line with the new needs stemming from the 2006-2011 strategicdirections, the workforce analysis highlighted human resources issues, in particular the reinforcement of certain key competencies, such as the ability to draw up policies, design programs, work in networks, be multiskilled, be adaptable and be a lifelong learner.

In view of this challenge, a number of existing measures, such as personalized learning andtraining plans, will be enhanced through in-house and external secondments or assignments,joint development and practice and learning communities. Also, to develop its managementsuccession, the Agency intends to encourage further training opportunities by facilitatingmobility, coaching and training. Finally, periodic exercises to forecast job openings (new needs and retirements) will help improve proactivity with respect to staffing


Like all other federal organizations, the Agency presents this section of the RPP on thebasis of its Program Activity Architecture. The new strategic directions will thus be reflected and explained within the framework of the PAA that is currently in effect. A new PAA was, however, recently approved by the Treasury Board Secretariat, but willcome into effect only in April 2007. This will be reflected in the 2007-2008 RPP.

2ANALYSIS OF PROGRAM ACTIVITIES BY STRATEGIC OUTCOME

2.1 First strategic outcome:Vitality of communities

2.1.1 Program activity:Improvement of the economic environment of regions

Through its actions, the Agency aims for Quebec’s different communities to be dynamicand to be revitalized by enjoying better socio-economic prospects. It intends to investsome $360 million over three years in this program activity.

Program Activity Architecture


To increase community vitality, closely tied to improving Canadians’ quality of life, theAgency intends to focus on three particular strategic objectives:

� foster the development of social capital through � establishment of visions and plans for development and diversification� local development� integration of target groups so as to increase local mobilization

� support communities so they can take charge of their own development through� emergence of new entrepreneurs� development and maintenance of viable enterprises of local or regional scope

in order to enrich the entrepreneurial fabric

� increase communities’ attraction and retention capability through� tourism outreach� the presence of assets and conditions raising the profile of the local area

so as to attract and retain skilled individuals.

For instance, with the 400th anniversary of Québec in 2008, this region will see major celebrations with a high potential for international visibility and economic spinoffs. The Agency will act as manager of the funds allocated to the St. Lawrence River waterfront development work. This project, which will constitute the Government of Canada’s principal real property bequest in commemoration of this significant anniversary, will help increase access to the St. Lawrence, and that will improveMetropolitan Québec’s tourism offering and the quality of the local environment for many years to come.

Moreover, in connection with community vitality (integration of target groups) and under section 41 of Part VII of the Official Languages Act, the Agency also aims to foster the economic development of official language minority communities in the regions of Quebec. It thus wishes to encourage increased participation by theEnglish-speaking clientele in their communities’ economic development. It intends to pursue implementation of its 2004-2005 to 2007-2008 Action Plan and develop a new action plan in line with its new strategic directions.

Guy Gauthier © Le Québec en images, CCDMD


2006-2007 2007-2008 2008-2009

Grants and contributions 106,538 105,940 91,718

Operations1 18,879 18,751 18,851

Total 125,417 124,691 110,569

Improvement of the economic environment of regionsResources

Planned spending ($ thousands)

Note:1 Including salaries, fringe benefits, and apportioned corporate services.

SOCIAL CAPITAL

Development initiatives and projects generate economic and social spinoffs within commu-nities.

Community members pursue adevelopment vision and plan andimplement the initiatives stemming from them.

Groups marginalized in develop-ment participate in regionaldevelopment initiatives andstructures.

LOCAL DEVELOPMENT

Communities benefit from new enterprises that generateemployment and wealth, contributing to diversification ofthe economic base.

Entrepreneurs carry out their corporate projects.

ATTRACTIVE MILIEUS

Communities are attractive, they attract, and lead to longer stays by, tourists, skilledindividuals (skilled labour orindividuals from the creativeclass) and international organiza-tions. This helps generate economic and social spinoffswithin the communities.

Communities are recognized for their distinctive character,brand image or outreach.

Note: 1 Complete results chains will be specified over the coming year.

Improvement of the economic environment of regionsMain planned results1

Social capital: social capital

refers to the networks of

social relations that may

provide individuals and

groups with access to

resources and supports.

Attractive milieus:

communities with relatively high vitality and openness to the world

which can thus increase their attraction capability through outreach

and the quality of the tourism offering, and through the presence of

assets which raise their profile so as to attract and retain tourists

and skilled individuals


2.1.2 Program activity:Improvement of community infrastructure

The quality of community infrastructure has an impact on Canadians’ quality of life.Quality infrastructure enables communities to attract and retain organizations and individuals that will secure their economic and social future. It also makes the movementof people and goods more efficient and safer.

In this spirit, the Government of Canada announced back in 2000 the creation of severalinfrastructure support programs and, among other things, it signed an agreement with theGovernment of Quebec in October 2000 for implementation of the Infrastructure CanadaProgram (ICP), namely, the Canada-Quebec infrastructure program agreement. In July2005, this agreement was amended to postpone the expiration date for the ICP and incorporate into it the implementation of a new program, the Municipal RuralInfrastructure Fund (MRIF). Further to that, the Agency was given the special mandate of managing these two programs in Quebec. In the case of the ICP, the Agency is fullyresponsible for management of the program. As to the MRIF, the Agency acts as the agent for the Department of Transport, Infrastructure and Communities, which hasresponsibility for the fund.

The MRIF is jointly administered by the Agency with the Quebec ministère des Affairesmunicipales et des Régions, which is the fund’s prime contractor. The MRIF’s priority is to target small municipalities (fewer than 250,000 inhabitants) for water supply and wastewater infrastructure projects. The federal budget envelope for 2005-2008 is $192 million, and breaks down as follows:

� $140 million for green municipal infrastructure (drinking water and wastewater)

� $2 million for knowledge development

� $50 million for local or regional development support infrastructure.


The ICP targets the renovation, replacement or construction of infrastructure. Its goal isthus to enhance Quebecers’ quality of life, through investment that secures environmentalquality, supports long-term economic growth, upgrades community infrastructure andcontributes to putting in place 21st-century community infrastructure through the adoption both of better technology and practices and of new approaches. The programhas three components, corresponding to three of the Agency’s program sub-activities:

Component 1: Drinking water and wastewater infrastructureComponent 2: Local transportation infrastructureComponent 3: Projects with economic, urban or regional impact.

Under this program, the Agency, in conjunction with the Government of Quebec, provides financial assistance to municipalities, inter-municipal boards, non-profit organizations, and enterprises. Under the terms and conditions of the ICP, as amended in July 2005, disbursement may be spread over the period until March 31, 2009. The nature and scope of infrastructure projects supported will continue to generate long-term results. As presented in the following table, the grant and contribution expenditures the Agency plans to make in support of the development of communityinfrastructure will reach some $89 million in 2006-2007. Sums not spent in a given yearare automatically transferred to subsequent years. As to the MRIF, since the Agency is simply acting as the delivery agent, only the operating budgets are allocated to it, and these are accounted for in the table below.

2006-2007 2007-2008 2008-2009

Grants and contributions 86,662 — —

Operations1 2,589 2,785 2,548

Total 89,251 2,785 2,548

Improvement of community infrastructureResources




2.1.3 Program activity:Provision of special adjustment measures

The Agency has a program activity whereby it can come to the assistance of communities or regions facing significant economic shocks, such as the closing of plants in an industrial sector, or natural disasters (flooding in the Saguenay, ice storm in Montréal and Montérégie). In those situations, in the event of additional dedicatedfunding from the Government of Canada, the Agency temporarily puts special adjustmentmeasures in place enabling communities to support their economic activity and initiateaction to help them regain a balance or economic stability.

At present, the Agency is responsible for delivery of the CANtex component of theCanadian Apparel and Textile Industries Program (CATIP). The goal of CANtex is tosupport initiatives to raise the productivity and competitiveness of textile firms. At thestart, CANtex aimed to support activities fostering increased productivity, such as production process re-engineering activities. Following the December 14, 2004, announcement of additional measures to encourage the textile and apparel industries further, a new component was added to CANtex, in order to foster the transition fromtraditional textile production to innovative or value-added textiles. This new CANtex IIor transformative component enables enterprises to acquire equipment and perform commercial promotion activities in order to convert part of their traditional productioninto advanced production. Since the new component was launched only in Fall 2005, part of the funding received was deferred to 2006-2007.

COMPONENT 1:

Drinking water and wastewater infrastructure

Municipalities have qualitydrinking water.

COMPONENT 2:

Local transportation infrastructure

Cities and municipalities benefit from safe transporta-tion infrastructure and con-tribute to reducing congestionand pollution.

COMPONENT 3:

Projects with economic,urban or regional impact

Maintenance and renewal of assets enhance the base of communities’ economicactivity.

Improvement of community infrastructureMain planned results


2.2 Second strategic outcome:Enterprises’ competitiveness

2.2.1 Program activity: Enterprise development


2006-2007 2007-2008 2008-2009


Operations1 1,023 1,048 603

Total 21,133 11,160 3,306

Provision of special adjustment measuresResources


The communities assisted mitigate economic shocks.

Intervention facilitates theappearance of opportunities fordevelopment and diversificationin communities affected by thedisappearance of major sourcesof employment.

The programs and initiatives put in place make it possible to manage economic crises associated with natural disasters.

Provision of special adjustment measuresMain planned results

The Agency’s second strategic outcome reads as follows: Quebec SMEs and regions are morecompetitive. Canadians’ standard of living is thus raised through lasting strategic investment in the capability of regions, networks, knowledge institutions, and SMEs to compete Canada-wide and globally.


A single program activity, Enterprise development, is associated with this strategic outcome, inline with the PAA currently in effect. This outcome is intimately linked to Canadians’ and communities’ standard of living. The Agency intends to act primarily onthree specific strategic objectives:

SMEs

� foster an increase in strategic capability with respect to management, innovation,adoption of advanced technology, market development, and integration with globalized production chains

� foster support for organizations dedicated to enhancing SMEs’ strategic capability

� facilitate the structuring of clusters to improve SMEs’ performance and make easier their adjustment to the new environment.

Competitiveness poles

� develop and consolidate regional poles and international-calibre poles of excellence through intensification of productive links among innovation players in order to improve the performance and outreach of innovation commercialization efforts.

International promotion of the regions

� foster regions’ international competitiveness through concerted, integrated promotion of identified location factors in order to attract direct foreign investment.

Through this program activity, the Agency aims to make Quebec’s regions and SMEs increasingly prosperous.


2006-2007 2007-2008 2008-2009


Operations1 27,939 26,236 26,370

Total 145,794 138,939 141,848

Enterprise developmentResources



SMEs

SMEs are high-performance andcompetitive, and this contributesto generating conditions con-ducive to sustainable growth.

COMPETITIVENESS POLES

Technological and commercialalliances exist among know-ledge players.

Innovation commercializationprocesses generate economicand social spinoffs in the medium and long term.

INTERNATIONAL COMPETITIVENESS OF THE REGIONS

Competitive regions contributeto raising Canada’s profile.

Competitive regions attract foreign investment, particularlyin key high value-added sectors.

Note:1 Complete results chains will be specified over the coming year.

Enterprise developmentMain planned results

Competitiveness poles:

combination, in a given

geographical area, of enterprises,

training centres and public or

private research units engaged

in a partnership approach so

as to derive synergy from

innovative projects.

Regional poles:

subsets of competitiveness

poles whose success is

measured in terms of links

between enterprises and

research institutions enabling

enterprises to incorporate

innovations into their processes

and products.

Poles of excellence:

subsets of competitiveness

poles whose achievement

of excellence is built on

international and national

research and development

outreach and successes with

respect to commercialization

of innovation.


2.3 Performance measurement strategy The Agency is implementing a performance measurement strategy which provides managerswith information on results that can inform their decision-making. The Agency’s performancemeasurement strategy includes ongoing monitoring and analysis of its intervention and associated results. It includes several reviews as well, that is, audits and evaluations to analyse its procedures, initiatives and programs. Also, since its main programs are certifiedISO 9001: 2000, in a spirit of continuous improvement the Agency is also conducting qualityaudits, confirming the application, on the one hand, of Departmental Quality ManagementPolicy and, on the other hand, of the procedures adopted.

With integrated planning and results-based management, all this information enables theAgency to learn continuously from its action and adjust its intervention so as to offer qualityprograms and services and intervene effectively in regional development in Quebec.

In 2006-2007, in the first year of implementation of its new strategic directions, the Agencywill work primarily to adjust its performance measurement strategy so as to include new performance indicators in it as well as new data collection methods and sources. Also, havingcompleted most of the evaluations scheduled in its five-year review plan, the Agency willdevelop a new multi-year review plan while working to establish benchmarks for measuringand monitoring results over time.

As to internal audit activities, the Agency conducted an initial identification of its main risks in 2001, which it updated in 2002. It will conduct a new exercise in 2006-2007. This risk definition exercise will make it possible, among other things, for the Agency to develop andupdate its risk-based audit frameworks for its programs, as well as its departmental evaluationplan. In addition, the Agency will carry out several audits, including an exercise concerning the Social Economy Initiative in Quebec and the Infrastructure Canada Program.

As in past years, the Agency will continue to improve the quality of the reports it produces for Parliament and Canadians. In that regard, for the first time since its constituent act cameinto force in October 2005, it will be tabling a comprehensive evaluation report in Parliamentin December 2006.


In 2006-2007, the Agency will have the equivalent of 408 full-time employees in its business offices across Quebec, its office in Gatineau ensuring liaison with the federalgovernment, and its Head Office in Montréal.

3.1 Information on the organization

3ADDITIONAL INFORMATION

Notes: 1 A more detailed organization chart is available on the Agency’s Web site at:

http://www.dec-ced.gc.ca/asp/APropos/Organigramme.asp?LANG=EN2 FTE: Full-time equivalent


3.2 Financial tables3.2.1 Departmental planned spending and full-time equivalents

($ thousands)

Enterprise development 118,569 145,794 138,939 141,848

Improvement of the economic environment of regions 84,688 125,417 124,691 110,569

Improvement of community infrastructure 229,631 89,251 2,785 2,548

Provision of special adjustment measures 11,202 21,133 11,160 3,306

Total Main Estimates1 444,090 381,595 277,575 258,271

Adjustments

Governor General’s warrants2 8,677 — — —

TB Vote 5 - Contingencies3 3,833 — — —

Procurement savings — (290) — —

Collective agreements 43 24 24 24

Total adjustments 12,553 (266) 24 24

Net Planned Spending 456,643 381,329 277,599 258,295

Less: Non-respendable revenue4 (42,500) (36,000) (42,000) (47,000)

Plus: Cost of services received without charge 4,874 5,515 5,534 5,529

Net Cost for the Agency 419,017 350,844 241,133 216,824

Full-time Equivalents 385 408 408 408

Notes:1 The smaller budget in 2007-2008 is attributable to the different mode of operation of the next

infrastructure program. The Municipal Rural Infrastructure Fund contribution budgets will remain under the authority of the Department of Transport, Infrastructure and Communities, and funds will beadvanced to the Agency at the appropriate time. The even smaller budget in 2008-2009 is attributable to a reduction in the grant to the Québec Port Authority in the context of the 400th anniversary of Québec.

2 A Governor General’s warrant is the official instrument used to obtain appropriations when Parliamenthas been dissolved pending a general election.

3 The contingencies vote serves to supplement other appropriations so as to provide the Government withsufficient flexibility to meet urgent or unforeseen expenditures.

4 Details concerning non-respendable revenue are presented in table 3.2.5.

Forecast spending

2005-2006

Planned spending

2006-2007

Planned spending

2007-2008

Planned spending

2008-2009


3.2.2 Program by activity

3.2.3 Voted and statutory items listed in Main Estimates

1 Operating expenditures2 44,693 34,128

5 Grants and contributions 331,165 405,814

(S) Minister of the Economic Development Agency of Canada for the Regions of Quebec – Salary and car allowance — 70

(S) Contribution to employee benefit plans 5,737 4,078

Total for the Agency 381,595 444,090

Vote or statutory item

Vote or statutory wording($ thousands)

Current Main Estimates1

Previous Main Estimates

Notes:1 The 2006-2007 Main Estimates of $381.6 million are $62.5 million down compared with 2005-2006.

This discrepancy is primarily attributable to: (1) a $140.4 million decrease under the Infrastructure Canada Program; (2) a budget increase, as follows: $43.6 million following the permanent increase in the budget for promotion of innovation and the knowledge economy, $17 million to support organizationof the commemoration of the 400th anniversary of Québec in 2008, and $9.9 million for strategic investment in order to increase enterprises’ competitiveness and the vitality of communities in the regions of Quebec.

2 Operating budgets have been increased to permit delivery of these new initiatives.

Spending - Program Activities

($ thousands)

Enterprise development 27,939 117,855 145,794 (141) 145,653

Improvement of the economic environment of regions 18,879 106,538 125,417 (111) 125,306

Improvement of community infrastructure 2,589 86,662 89,251 (11) 89,240

Provision of special adjustment measures 1,023 20,110 21,133 (3) 21,130

Total 50,430 331,165 381,595 (266) 381,329

Note:1 Including contribution to employee benefit plans.

Operating1

Budgetary

Grants andcontributions

GrossSpending

Adjustments TotalPlannedSpending

2006-2007


3.2.4 Services received without charge

3.2.5 Sources of non-respendable revenue by program activity

2006-2007($ thousands)

Accommodation provided by Public Works and Government Services Canada 3,070

Employer’s contribution to employees’ insurance premiums and expenditures paid by the Treasury Board Secretariat 2,415

Salary and associated expenditures for legal services provided by Justice Canada 30

Total services received without charge 5,515

Non-respendable revenue($ thousands)

Promotion of the economic development of the regions of Quebec

Enterprise development 41,000 35,000 41,000 45,000

Improvement of the economic environment of regions 1,500 1,000 1,000 2,000

Improvement of community infrastructure — — — —

Provision of special adjustment measures — — — —

Total non-respendable revenue2 42,500 36,000 42,000 47,000

Notes:1 The exceptional amount of $42.5 million is primarily attributable to the sums billed during the year

to applicants who were in contractual default and whose contribution from the Agency must be repaid immediately.

2 This refers to reimbursements of repayable contributions to be billed over the next few years. The Agency’s contribution budgets increased from 2002-2003 following the transfer of Canada Jobs Fundcredits from Human Resources Development Canada. Consequently, since repayable contributions willbegin to come due in 2006-2007, revenue in the next few years will increase accordingly.

Forecast revenue

2005-20061

Planned revenue

2006-2007

Planned revenue

2007-2008

Planned revenue

2008-2009


3.2.6 Details on transfer payments programs

Programs($ thousands)

Grants

Innovation, development of entrepreneurship and access program for SMEs (IDEA-SME) 300 300 300 300

Grant to Québec Port Authority — 16,770 21,755 4,700

Total grants 300 17,070 22,055 5,000

Contributions

Innovation, development of entrepreneurship and access program for SMEs (IDEA-SME) 82,035 86,306 76,888 80,068

Regional Strategic Initiative (RSI) program 94,654 93,703 93,345 95,320

Community Futures Program (CFP) 18,500 25,994 26,355 26,808

Canadian Apparel and Textile Industries Program (CATIP) – CANtex component 2,757 20,110 10,112 2,703

Canadian Support Program for the Gaspésie—Îles-de-la-Madeleine Economy 2,438 1,320 — —

Infrastructure Canada ProgramCanada–Quebec Agreement 2000 218,082 86,662 — —

Total Contributions 418,466 314,095 206,700 204,899

Total 418,766 331,165 228,755 209,899

Forecastspending

2005-2006

Plannedspending

2006-2007

Plannedspending

2007-2008

Plannedspending

2008-2009


3.3 Sustainable Development Strategy

In 2006-2007, the Agency will pursue the commitments it made in the SustainableDevelopment Strategy 2003-2006, as described in the action plan on the following page.The Agency will foster the development and integration of innovation strategies, bothwithin enterprises and in terms of production of green products and technology. Morespecifically, the Agency intends to develop SMEs’ environmental innovation capabilityand encourage the adoption of green technology with a view to enhancing their productivity and eco-efficiency. As to the in-house component, the Agency will focus its efforts on greening by reducing its paper use in particular. Results will be measured by the level of paper use and the level of recycling through a diagnosis the Agency willperform during the year.

In December 2006, the Agency will table its fourth Sustainable Development Strategy(SDS), for 2006-2009. This strategy will present to Canadians the commitments made by the Agency for the next three years to support its sustainable development objectives.

The Agency aims, in drawing up this fourth SDS, to align its sustainable developmentobjectives with the strategic directions for 2006-2011. These directions adopt an integrated development approach, that is, an approach which takes the economic, social,cultural and environmental dimensions into consideration from the program and policydesign stage. These directions and this integrated approach are described in Section 1.

The strategic goals anticipated for this fourth SDS concern both the Agency’s external andits in-house activities. With respect to its external activities, it intends to help Quebec’sSMEs, regions and communities position themselves favourably in the 21st-century greeneconomy and enhance the quality of life of their respective milieus. With regard to its in-house activities, the Agency intends to apply the principles of sustainable developmentin its decision-making processes and to be a highly dynamic and responsible organizationin terms of taking environmental best practices on board.

Gaétan Beaulieu © Le Québec en images, CCDMD


1. INTERNAL COMPONENT

Goal To make the Sustainable DevelopmentStrategy a tool for change within the organization to further integrate sustainabledevelopment concerns in day-to-day operations.

Objectives � empower staff� promote sustainable development� continue greening� ensure better environmental reporting.

2. EXTERNAL COMPONENT

Goal To play a strategic role in advancing understanding and taking ownership of the principles of cost-effective sustainable development within SMEs and the regions of Quebec, and with the Agency’s differentpartners, both private and public, in a perspective of financial, economic and social viability.

Objectives � encourage and help SMEs to adopt

sustainable development practices in their operations

� foster development and commercialization of innovations in sustainable development

� foster development, dissemination and sharing of knowledge with respect to sustainable development to contribute to development and reinforcement of knowledge-based competitive advantages.

3. IMPLEMENTATION OF THE SDS — PARTNERSHIPS

Objective To reinforce existing partnerships and better coordinate Agency efforts with the different partners in Quebec.

SUSTAINABLE DEVELOPMENT STRATEGYAction Plan 2003-2006

The Sustainable Development Strategy – Action Plan 2003-2006 may be consulted at:http://www.dec-ced.gc.ca/Complements/Publications/Strategie-EN/SDD_2003-2006_en.pdf?action=click&pid=PDF&uid=SiteWeb


3.4 Internal audit and evaluation

In 2005-2006, the Agency completed by far the majority of the internal audit and evaluation exercises in its five-year (2001-2006) review plan. During FY 2006-2007,backed by the results of a new exercise to determine the main departmental risks, it will draw up a new multi-year plan for internal audits and evaluations that will meet the information requirements of corporate managers and government managementand reporting requirements, as expressed, for instance, in the Treasury Board SecretariatManagement Accountability Framework.

This new plan, in its first year of implementation, will include work to benchmarkplanned results in several areas of intervention. Among other things, this work will enable the Agency to:

� target its planned results more closely

� set implementation benchmarks

� gauge the effectiveness of its intervention over time

� make adjustments accordingly

� more accurately determine its impact on regional development in Quebec.

The following table presents some reviews that should be completed in 2006-2007. As soon as the Agency has adopted its new multi-year plan, other reviews will be added to this list.


INTERNAL AUDIT EXERCISES

Audit of the Social Economy Initiative in Quebec

� In its 2004 budget, the Government of Canada announced the launch of the Social EconomyInitiative. The announcement included funding for the implementation of measures to:� reinforce community economic development capabilities� increase loans to social economy enterprises� give those enterprises access to existing development programs.

In the context of implementation of this initiative in Quebec, the Agency has undertaken toconduct an audit in 2006-2007 to examine the controls associated with management of thecontribution program put in place to reinforce social economy capabilities.

Audit of the Infrastructure Canada Program

� This program is funded by three levels of government (federal, provincial and municipal). Each year, to ensure that each level of government is meeting its commitments, a joint audit is conducted by the Governments of Canada and Quebec, covering the departments involved in delivering the program.

Audit of the Canada Business Service Centres initiative

� The Agency provides financial support for two bodies which provide business intelligence toQuebec enterprises. As stipulated when this initiative began, the Agency’s internal audit teamwill audit these bodies and the departmental branch responsible for the initiative in order toensure that all the parties are complying with the clauses of the funding agreement.

Audit of application of the Official Languages Act within the framework of the Community Futures Program

� In May 2005, the Office of the Commissioner of Official Languages released an audit report concerning the services offered by organizations supported by the Community FuturesProgram (CFP) located in designated bilingual regions of Canada. In the wake of this report,the Agency undertook to put measures in place to upgrade the services offered to Quebec’sEnglish-speaking communities. One of these measures involves ensuring, through an expertaudit, rigorous monitoring of the level and quality of services offered in English in designatedbilingual Quebec regions.

EVALUATION EXERCISE

National formative evaluation of the capacity-building component of the Social Economy Initiative

� The Horizontal Results-based Management and Accountability Framework of the SocialEconomy Initiative (capacity-building and funding), approved by Treasury Board on November 28, 2005, provides for the tabling of a national formative evaluation of the capacity-building component during winter 2007.

Rapport sur les plans et les priorités 2006-2007 43

To promote the development and economic diversification of the regions of Quebec and achieve the outcomes from its four program activities as described in Section 2, the Agency uses and makes available to its clientele a vast array of tools and programswhich enable it to intervene with respect to regional development. This range of intervention tools consists of guidance and advice, information and referrals, and financial support.

These tools, used alone or together by the Agency, contribute in particular to:

� empowering entrepreneurs and local and regional development agents; in other words, the Agency provides the latter with means and opportunities (studies, workshops and seminars) for: � becoming aware of the scope of the issues affecting them (awareness process)� acquiring skills and knowhow in various specialized fields (skills development)� reinforcing and broadening their business partnership networks

(development of networks and business partners)

� initiating growth-generating projects, that is, identifying development potential and initiating processes aimed at local mobilization and joint action to design and implement a plan, strategy or growth-generating project for a region’s development

� facilitating local participation in defining the regional development priorities and policy of the Agency and the Government of Canada

� helping the local milieu gather information and put forward regional issues to government decision-makers.

4.1 Agency tools and programs

4APPENDICES


Guidance and advice

For the Agency, guidance and advice involve helping entrepreneurs and local and regionaldevelopment agents design and develop policy, a strategy, a business plan, an action planor a project, or helping them plan a financial package, identify funding sources, and soon. At the Agency, advice or guidance provided by a staff member are services deliveredto an entrepreneur or local development agent on an individual basis, geared to his specific situation. Provision of advice is done as needed. A guidance approach constitutessystematic, sustained, prolonged assistance, at various stages along the client’s pathtoward design and implementation of his project.

Information and referrals

The Agency produces timely information so entrepreneurs and local and regional development agents may reach informed decisions, and it makes this information more easily accessible and usable. This also involves referring them to resources likely to provide a timely, appropriate response to their specific needs.

In this regard, the Agency works with the Canada Business Service Centres operating inQuebec, namely, Info entreprises in Montréal and Ressources Entreprises in Québec, forEastern Quebec. These organizations deliver information, referral and reference materialservices to entrepreneurs and local and regional development agents throughout Quebec.

Financial support

The Agency has several programs and services whereby it makes both repayable and non-repayable contributions and, in exceptional cases, grants to its clientele, comprisingSMEs, agencies which assist them, and communities. The Agency’s programming breaksdown into different categories, as shown in the following table.


Regular programming associated with the Agency’s core mandate

The Agency’s main regular programs of financial assistance are IDEA-SME, RSI and CFP. The expiration date for IDEA-SME and RSI is March 31, 2007. Completing the programming inherent in the Agency’s core mandate is the Canadian Support Program for the Gaspésie—Îles-de-la-Madeleine Economy, which has a dedicated budget envelope.But this program is no longer active for applications received after August 23, 2005.Eligible expenditures under this program may be made until August 22, 2008.

Innovation, development of entrepreneurship and access program for SMEs

The IDEA-SME program primarily targets enterprise development. Its goal is to foster thegrowth of business generated by enterprises in all Quebec regions by facilitating, amongother things, access to relevant information, awareness of enterprises’ development issues,establishment of strategic enterprises, and consolidation of their competitiveness throughnew business practices, innovation and commercialization. In that way, this program fosters realization of the regions’ economic development potential, leading in the longterm to enhanced prosperity and sustainable employment. The IDEA-SME program nowhas a new social economy component whereby it can fund social economy enterprises,make regional patient capital funds available to them and foster development of theircompetencies and capabilities.


Programming

Regular programming

� Innovation, development of entrepreneurship and access program for SMEs (IDEA-SME)

� Regional Strategic Initiative (RSI) program

� Community Futures Program (CFP)

Dedicated programming

� Canadian Support Program for the Gaspésie—Îles-de-la-Madeleine Economy(payments only)

Programming under mandates from the Government of Canada

� Infrastructure Canada Program – Canada-Quebec Agreement 2000

� Canadian Apparel and Textile Industries Program (CATIP) – CANtex component

SPEC

IAL

MAN

DATE

SCO

RE C

ORP

ORA

TE M

ANDA

TE


As to planned results, the program should lead to:

� an increase in awareness of innovation, commercialization and entrepreneurship

� an increase in identification and integration of new technology

� an increase in commercialization of products arising out of innovation

� an increase in enterprises’ productivity with a view to making them more competitive on the international scene

� support for testing and experimentation activities in the natural resources sector in regions whose economy is heavily resource-based

� an increase in SMEs’ activities on international markets and consolidation of exporting SMEs’ position

� stimulation of the emergence of initiatives aimed at enterprise startups and improvement in the business climate

� reinforcement of the competencies and capabilities of social economy enterprises.

Regional Strategic Initiatives Program

This program involves developing and implementing strategies and action plans fosteringthe creation of a socio-economic environment conducive to reinforcing the assets andcompetitive advantages of Quebec regions, with a view to enabling them to realize theireconomic development potential, leading in the long term to lasting improvement in prosperity and employment. The program supports major initiatives likely to have agrowth-generating impact on the regional economy, in response to major regional issuesidentified through a process of local consultation, dialogue and mobilization. The projectsand activities stemming from it permit great flexibility and can take various forms, in linewith the needs of a single region or a given group of regions.

The program first aims to increase the regions’ technological capability so as to encourage the use of the most appropriate technologies and their adaptation by SMEs.The program helps develop the regions’ tourist attraction potential, too, as well asincreasing the attraction capability of international activities. It is also used to support the regions in their efforts to adjust to the new global economic environment, especially in rural areas.

For information:http://www.dec-ced.gc.ca/asp/ProgrammesServices/prg_idee_pme.asp?LANG=EN


Planned results from the program include:

� an increase in the use of new technology by SMEs

� an increase in the number of foreign tourists in the regions

� an increase in the number of foreign visitors at different international events

� an increase in the number of projects concerning the regions’ adjustment to the new global economic environment, notably in rural areas.

Community Futures Program

This Canada-wide program provides support for communities in all parts of the countryto help them take charge of their own local development. In Quebec, the CFP financiallysupports 57 Community Futures Development Corporations, as well as 14 CommunityEconomic Development Corporations and nine Business Development Centres.

Dedicated programming under the Agency’s core mandateCanadian Support Program for the Gaspésie–Îles-de-la-Madeleine Economy

This program came to an end in August 2005. The purpose of this special measure, funded from the Agency’s basic budget, was to support economic activity in the Gaspésie—Îles-de-la-Madeleine region. The program was in addition to the Agency’s regular activities and gave priority to the following elements:

� enhancement of federal infrastructure

� development of medium-sized enterprises

� young people

� local empowerment

� emerging initiatives.


Programming under mandates from the Government of Canada

Infrastructure Canada Program – Canada-Quebec Agreement 2000

Within the framework of the pan-Canadian Infrastructure Program under Treasury Board Secretariat responsibility, a Canada-Quebec Agreement was signed in October2000. The objective of this agreement was to upgrade municipal, urban and rural infrastructure in the province and improve Quebecers’ quality of life. The Agency acts on behalf of the Government of Canada as the federal department responsible forimplementation in Quebec. This agreement was amended in July 2005 to postpone toMarch 31, 2009 the deadline for disbursements under the ICP. Since December 2005,under the terms of the Agreement, no more new projects may be approved under the program.

Canadian Apparel and Textile Industries Program (CATIP)–CANtex component

The objective of this component is to encourage Canadian textile companies to:

� choose products with greater added value

� exploit new key sectors

� increase their productivity.

Textile firms in Quebec can thus benefit from contributions in order to carry out projectsaimed at enhancing their competitiveness on an ongoing basis.

For information: http://www.dec-ced.gc.ca/asp/ProgrammesServices/TravauxInfrastructures.asp?LANG=EN

For information:http://strategis.ic.gc.ca/epic/internet/inctp-ptc.nsf/en/Home


CATIP Canadian Apparel and Textile Industries Program

CFP Community Futures Program

CMA Census Metropolitan Area

FTE Full-time equivalent

FY Fiscal year

ICP Infrastructure Canada Program

IDEA-SME Innovation, development, entrepreneurship and access program for SMEs

MAF Management Accountability Framework

MRIF Municipal Rural Infrastructure Fund

MRRS Management, Resources and Results Structure

NPO Non-profit organization

PAA Program Activity Architecture

R&D Research and development

RPP Report on Plans and Priorities

RSI Regional Strategic Initiatives

SDS Sustainable Development Strategy

SME Small- and medium-sized enterprises

TBS Treasury Board Secretariat

4.2 List of acronyms


Abitibi-Témiscamingue906 5th AvenueVal-d’Or, Quebec J9P 1B9Tel.: 819-825-5260 • 1-800-567-6451Fax: 819-825-3245

Bas-Saint-Laurent2 Saint-Germain Street East, Suite 310Rimouski, Quebec G5L 8T7Tel.: 418-722-3282 • 1-800-463-9073Fax: 418-722-3285

Centre-du-QuébecPlace du Centre150 Marchand Street, Suite 502Drummondville, Quebec J2C 4N1Tel.: 819-478-4664 • 1-800-567-1418Fax: 819-478-4666

Côte-Nord701 Laure Blvd.Suite 202B, P.O. Box 698Sept-Îles, Quebec G4R 4K9Tel.: 418-968-3426 • 1-800-463-1707Fax: 418-968-0806

EstriePlace Andrew Paton65 Belvédère Street North, Suite 240Sherbrooke, Quebec J1H 4A7Tel.: 819-564-5904 • 1-800-567-6084Fax: 819-564-5912

Gaspésie—Îles-de-la-Madeleine120 de la Reine Street, 3rd FloorGaspé, Quebec G4X 2S1Tel.: 418-368-5870 • 1-866-368-0044Fax: 418-368-6256

Île-de-Montréal3340 de l’Assomption Blvd.Montréal, Quebec H1N 3S4Tel.: 514-283-2500 • 1-800-322-4636Fax: 514-496-8310

Laval—Laurentides—LanaudièreTour Triomphe II2540 Daniel-Johnson Blvd., Suite 204Laval, Quebec H7T 2S3Tel.: 450-973-6844 • 1-800-430-6844Fax: 450-973-6851

MauricieImmeuble Bourg du Fleuve25 des Forges Street, Suite 413Trois-Rivières, Quebec G9A 2G4Tel.: 819-371-5182 • 1-800-567-8637Fax: 819-371-5186

MontérégieComplexe Saint-Charles1111 Saint-Charles Street West, Suite 411Longueuil, Quebec J4K 5G4Tel.: 450-928-4088 • 1-800-284-0335Fax: 450-928-4097

Nord-du-QuébecTour de la Bourse800 square VictoriaSuite 3800, P.O. Box 247Montréal, Quebec H4Z 1E8Tel.: 514-283-8131 • 1-800-561-0633

Service Point, Chibougamau: 418-748-2175 • 1-877-748-2175Fax: 514-283-3637

Outaouais259 Saint-Joseph Blvd., Suite 202Gatineau, Quebec J8Y 6T1Tel.: 819-994-7442 • 1-800-561-4353Fax: 819-994-7846

Québec—Chaudière-AppalachesÉdifice John-Munn112 Dalhousie Street, 2nd FloorQuébec, Quebec G1K 4C1Tel.: 418-648-4826 • 1-800-463-5204Fax: 418-648-7291

Saguenay—Lac-Saint-Jean170 Saint-Joseph Street South, Suite 203Alma, Quebec G8B 3E8Tel: 418-668-3084 • 1-800-463-9808Fax: 418-668-7584

CORPORATE SERVICESTour de la Bourse800 Square VictoriaSuite 3800, P.O. Box 247Montréal, Quebec H4Z 1E8Tel: 514-283-6412 • 1-866-385-6412Fax: 514-283-3302

Place du Portage, phase II165 Hôtel-de-Ville StreetP.O. Box 1110, Station BGatineau, Quebec J8X 3X5Tel.: 819-997-3474Fax: 819-997-3340

4.3 Agency business offices


A

Adjustment difficulties, 7, 14

C

Canada’s performance, 4, 12

Canadian Apparel and Textile IndustriesProgram (CATIP)–CANtex component, 28, 37, 45, 48, 49

Canadian Support Program for theGaspésie–Îles-de-la-Madeleine Economy, 37, 45, 47

Capacity-building, 8, 41

Central areas, 1, 10, 14, 15, 18, 19

Clusters, 9, 17, 30

Commercialization, 5, 8, 17, 30, 31, 39, 45, 46

Community Futures Program (CFP), 37, 41, 45,47, 48

Community vitality, 24

Communities in transition, 7, 8

Competitiveness, 1, 2, 6, 7, 9, 13, 14, 16, 17, 19,28-31, 35, 45, 48, 53

Competitiveness poles, 30, 31, 53

D

Development organizations, 5

Devitalized urban communities, 21

E

Economic development, 1, 2, 4, 19, 24, 36, 41,45-47

Enterprise development, 6, 9, 29-31, 34-36, 45

Enterprises’ competitiveness, 6, 7, 29, 35

F

Financial tables, 34-37

I

Improvement of community infrastructure, 26-28, 34, 36

Improvement of the economic environment of regions, 6, 7, 23, 25

Infrastructure Canada Program (ICP), 26, 27,32, 35, 37, 41, 45, 48, 49

Innovation, 2, 5, 9, 11-14, 17, 19, 30, 31, 35,37-39, 45, 46, 49

Innovation, development of entrepreneurship and export program for SMEs (IDEA-SME), 11, 14, 37, 45, 49

Internal audit and evaluation, 40

K

Knowhow, 5, 17, 43

Knowledge, 4, 5, 7, 8, 11, 13, 14, 18, 19, 26,29, 31, 35, 39

Knowledge institutions, 4, 5, 14, 18, 29

L

Local development, 5, 19, 24, 25, 44, 47

M

Major urban centres, 1, 10, 14, 15, 17, 19, 21

Management Accountability Framework, 6, 10,21, 40, 49

Management priorities, 6, 7, 10

Mandate, 2, 26, 45, 47, 48

Marketing, 18

Montréal, 1, 9, 14-18, 28, 33, 44, 50

Municipal Rural Infrastructure Fund (MRIF),26, 27, 34, 49

4.4 Index


N

Non-profit organizations, 5, 27, 49

O

Official languages, 24, 41

Outlying areas, 10, 14, 15, 19, 20

P

Performance, 4-7, 9, 12, 19, 30-32

Performance measurement strategy, 32

Performance Report

Plan, 2, 3, 5, 6, 11, 13, 22, 24, 25, 27, 32,35, 38-40, 43, 44, 46, 49

Poles of excellence, 31, 53

Priorities, 2, 3, 6, 7, 10, 12, 13, 22, 43, 49

Productivity, 2, 12-14, 19, 28, 38, 46, 48

Program activities, 6, 7, 9, 12, 23, 26, 28-30,35, 36, 43

Program Activity Architecture, 3, 11, 23, 49

Program priorities, 6, 7

Provision of special adjustment measures, 28,29, 34, 36

Q

Quality of life, 4, 7, 12, 13, 17, 24, 26, 27,38, 48, 53

R

Regional development,1, 4, 12, 13, 25, 26,32, 40, 43, 44

Regional poles, 30, 31, 53

Regional Strategic Initiative (RSI) program,37, 45

Report on Plans and Priorities, 2, 3, 13, 49

Research centres, 5, 9, 17

Results, 3, 5, 7-9, 11, 12, 25, 27-29, 31, 32,38 40, 41, 46, 47, 49

Results-based management, 6, 7, 10, 11, 32, 41

Rural communities, 18, 21

S

Small- and medium-sized enterprises (SMEs),2, 4-7, 9, 10, 13, 14, 19, 29-31, 37-39, 44-48

Social capital, 24, 25, 53

Social economy, 8, 19, 32, 41, 45, 46

Standard of living, 4, 9, 13, 29, 30, 53

Strategic directions, 1, 6, 10, 11, 13, 14, 21-24, 32, 38

Strategic outcomes, 1, 4, 6, 7, 23, 29, 30

Sustainable development, 38, 39, 49

Sustainable Development Strategy (SDS), 39,38, 48, 49

T

Technology transfer centres, 5, 19

Tourists, 4, 5, 25, 47

U

Upgrading community infrastructure, 5

Urban centres, 1, 10, 14, 17-19, 21

V

Vitality, 1, 6, 7, 13, 14, 16, 21, 23-25, 35, 53

Vitality of communities, 1, 6, 7, 13, 14, 23,25, 35

Vulnerable communities, 1, 14, 20, 21


Vitality 7

Cluster 17

Local development 19

Attractive milieus 25

Competitiveness poles 31

Regional poles 31

Poles of excellence 31

Quality of life 7 Grand dictionnaire terminologique(definition translated from the French)

Competitiveness 9 Grand dictionnaire terminologique, Dictionnaire des mots nouveaux (Pierre Gilbert)and Economic Development Agency of Canada for the Regions of Quebec (definition translated from the French)

Standard of living 9 Dictionnaire de l’Académie française(definition translated from the French)

Social capital 25 Social Capital as a Public Policy Tool - Project Report, 2005 (Policy Research Initiative)

Definition sources


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